BUS2 130, Exam 1, SJSU Questions and Answers(A+ Solution guide)

BUS2 130, Exam 1, SJSU Drawbacks of portfolio planning include what? - ️️Difficult to execute, time consuming, and costly to implement; Hard to define SBUs and the measurement of relative market share and growth; Helpful for classifying current business. They offer little or no advice for future planning Customer Equity - ️️The sum of the lifetime values of all a company's current and potential customers. companies must manage it carefully, and view customers as assets that need to be maximized. It is dependent upon customer loyalty from a firm's profitable customers. It is a reflection of a company's future. What is the overall plan for marketing strategy? - ️️segmentations, targeting, positioning Marketing Mix (4 P's) - ️️product, pricing, place (distribution), promotion (communication). Needs - ️️states of felt deprivations. Biogenic Needs - ️️needs present at birth. Psychogenic Needs - ️️needs learned in the process of enculturation (belonging, self expression, knowledge acquisition, etc) Wants - ️️options used to fill needs Demands - ️️wants backed by consumer buying power. In order to acquire new customers, companies must consider: - ️️the values of customers and the acquisition of costs the current value of a customer is a complex formula that includes: - ️️Gross profit (revenue-costs of goods sold); Cost of maintaining customer; Discount rate (considered for each year of expected revenue from that customer); Cost of acquiring new customers Strategic Planning - ️️The process of developing and maintaining a strategic fit between the organization's goals and capabilities and changing marketing opportunitiesMission Statements - ️️Lead to setting business and marketing objectives/goals, and guide decisions regarding what portfolio of businesses and products is best for the company. What does business planning entail? - ️️Current portfolio analysis, followed by decisions about what businesses should receive more, less or no investment; Planners shape the future portfolio by developing strategies for growth and/or downsizing Marketing's role within a firm - ️️Marketing should be a profitable investment that forces business to confront uncertainty in the environment, like changes in consumer tastes or changes in regulations. What are business portfolios developed in support of? - ️️Business portfolios are developed in support of its strategic goals what are the four categories in which SBUs travel through the BCG? - ️️Question Marks: High growth, low share; Stars: high growth, high share products; Cash cows: low growth, high share; Dogs: low growth, low share How may companies determine the future? - ️️Companies can determine the future, using strategies of building, holding, harvesting, or divesting each SBU. Strategies for Growth - ️️Market penetration: making more sales to current customers without changing products; Market development: identifying and developing new markets for a company's products; Product develop: offering modified or new products to current markets; Diversification: companies consider acquiring or starting new businesses unrelated to their core competencies The strategic marketing process PLANNING PHASE includes - ️️Situational SWAT analysis; Market-Product Focus and Goal Setting (targeting and positioning); Program of the 4 Ps. Situational SWOT analysis - ️️Build upon STRENGTHS; Correct WEAKNESSES; Exploit OPPORTUNITIES; Avoid THREATSWhat are the steps taken for Market-Product Focus and Goal Setting (targeting and positioning) - ️️Set marketing and product goals (e.g. generally to whom and when); Select target markets (specifically to whom); Find points of difference What are the aspects of the strategic marketing process? - ️️Planning phase; implementation; Evaluation Implementation (the strategic marketing process) - ️️Obtain resources, define responsibilities and execute Evaluation (strategic marketing process) - ️️Identify deviations from plan and act on deviations CREST is an acronym that means what? - ️️Competitive; Regulatory; Economic, Socio-cultural; Technological environments. CREST helps us remember what factors? - ️️The uncontrollable factors that shape opportunities and and threats. Competitors in CREST - ️️companies in the same industry that sell similar products or services to customers; Restrictions placed on business activities by States and federal laws Economic in CREST - ️️Purchasing power and spending; Import trends (spending pattern changes, Income level) Strategies for growth - ️️market penetration; market development; product development; diversification Market penetration - ️️Making more sales to current customers without changing products. Market development - ️️Identifying and developing new markets for a company's products. Product development - ️️Offering modified or new products to current markets. Diversification - ️️Companies consider acquiring or starting new business unrelated to their core competencies.Social demographic - ️️The population mix: location, age, gender, occupation, ethnicity, Technological - ️️New product and market opportunities Market segmentation process includes - ️️market segmentation, market targeting, market position Market segmentation - ️️The division of the market into distinct groups who call for separate products or market mixes. What is the reason for market segmentation - ️️differences in buyers Bases for Segmentation - ️️Geographic, demographic, psychographic, behavioral geographic segmentation - ️️segmenting markets by region of a country or the world, market size, market density, or climate demographic segmentation - ️️dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation psychographic segmentation - ️️dividing a market into different segments based on social class, lifestyle, or personality characteristics Primary motivations for Ideals - ️️Rely on belief systems and relatively unconcerned w/ other's views; VALS Segments: High resources are thinkers and low resources believers. Primary motivations for Achievement - ️️Success-oriented and considers what peers think; VALS Segments: High resources are achievers and low resources are strivers. Self-Expression - ️️Social and physical activity, desire variety and risk; VALS Segments: High resources are experiencers, low resources are makers.Two other VALS segments based on the high/low resource distinction are - ️️Highest resources are innovators and lowest resources are strugglers. Behavioral segmentations include - ️️product features (occasions, benefits) and usage (user rate, user status). Market targeting includes - ️️Evaluation of Segment Attractiveness and Choice of the Best Segments Another targeting strategy - ️️"Mass Customization" or "One-to-One Marketing," has allowed the tailoring of products to the taste of individual consumers on a high-volume scale. Market Positioning - ️️The place within the segment that a company wishes it's product to occupy. Bases for segmentation - ️️market targeting Detail a marketing plan to support positioning like - ️️For (target customer); Who (statement of needs/opportunity); The (product name) is a (product category); That (core benefit proposition); Unlike (Primary competitive alternatives); Our product (point of difference) Key to successful positioning - ️️Complete competitive analysis; Strong understanding of current positions; Identifications of re-positioning opportunities and/or new product openings Considerations for Targeting Strategy - ️️Market Size (present and future); Competitive Position; Cost of Reaching the Segment; Compatibility and Resources VALS - ️️Value and lifestyles system. Has three primary motivations and corresponding VALS segments: Ideals (thinkers and believers); achievement (achievers and strivers); Self-expression (experiencers and makers).